Pledge | Practical Law

Pledge | Practical Law

Pledge

Pledge

Practical Law UK Glossary 2-107-7016 (Approx. 3 pages)

Glossary

Pledge.

A type of security: the delivery of possession of an asset as security until payment. Possession may be actual or constructive, for example, handing over the keys to the store where the pledged goods are kept. Ownership remains with the pledgor. The pledge confers on the creditor or pledgee a power of sale in the event of default.